Silver has various applications, including in investments as well as in different industries, meaning its demand stems from different sectors. The metal is considered to be versatile, with its demand being driven by its end uses that range from medicine to silverware. Technological and industrial uses for silver account for more than one-half of annual international demand, stimulated by its ductility, malleability and strength.
Last year, the global demand for the metal decreased by roughly 99 million ounces, with the largest decline in consumption being recorded in the silverware and jewelry segments.
Projections show that the demand for the metal is expected to increase, with much of that increase coming from the solar energy sector. This is because silver is a great conductor of electricity and heat, making it suitable for use in solar panels. Below, we discuss some of the qualities and uses of the metal as well as factors affecting its demand.
Silverware
The pandemic affected demand for silver from the silverware industry, which fell by almost 50% to 32.5 million ounces. Since the 14th century, sterling silver has been used for silver flatware and hollowware. Cutlery and décor made of silver lasts for years because the metal doesn’t tarnish easily. To strengthen the metal, base metal copper is sometimes mixed with silver.
Jewelry
Most of the silver produced from mines is used to make jewelry. Silver is one of the most popular materials used to make jewelry, not only because it lasts but also because the metal requires minimal care and is easily sculpted into different forms. Last year, jewelry manufacture reduced considerably during the pandemic, dropping by more than 52 million ounces. It is expected to bounce back as time goes by.
Industrial manufacture
Of all metals, silver is the best thermal and electrical conductor, which is why it’s used in so many industrial applications including in the manufacture of fuses, contacts, witches and conductors. Last year, industrial application demand for silver dropped due to pandemic lockdowns. This segment is expected to rebound this year, as the demand picks back up. The use of silver in the manufacture of solar panels rose last year to more than 100 million ounces, with projections showing that this number will increase as more areas throughout the United States adopt the use of solar power.
Silver bars, bullion coins
While silver may not be the most popular metal to use in coins, some coins are still minted using this metal. Last year, the consumption of silver in terms of bars and coins topped 200 million ounces. This figure is expected to increase in the long term as the metal’s demand increases.
As the demand for silver grows, mining companies such as Asia Broadband Inc. (OTC: AABB) are positioned to meet the demand of years to come and benefit from the possible rise in prices.
NOTE TO INVESTORS: The latest news and updates relating to Asia Broadband Inc. (OTC: AABB) are available in the company’s newsroom at https://ibn.fm/AABB
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